Last week, you might have seen that Zebra Technologies Corporation (NASDAQ:ZBRA) released its annual result to the market. The early response was not positive, with shares down 3.9% to US$239 in the past week. Zebra Technologies reported US$4.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$9.97 beat expectations, being 2.2% higher than what analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Zebra Technologies after the latest results.
Taking into account the latest results, the current consensus from Zebra Technologies's ten analysts is for revenues of US$4.71b in 2020, which would reflect a credible 5.0% increase on its sales over the past 12 months. Statutory earnings per share are expected to climb 16% to US$11.67. Before this earnings report, analysts had been forecasting revenues of US$4.76b and earnings per share (EPS) of US$11.47 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$267. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Zebra Technologies at US$305 per share, while the most bearish prices it at US$217. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
In addition, we can look to Zebra Technologies's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. We would highlight that Zebra Technologies's revenue growth is expected to slow, with forecast 5.0% increase next year well below the historical 11%p.a. growth over the last five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.2% next year. So it's pretty clear that, while Zebra Technologies's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Zebra Technologies going out to 2022, and you can see them free on our platform here.
You can also see whether Zebra Technologies is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.